The Great Gatsby Curve

Alan Krueger, a colleague at Princeton University last week, the chairman of the Economic Advisory Council, and vice versa - last week, we announced a very useful speech about inequality. . Most of these are already known by inequality experts, but he has amazing results This is a test I have doubted but have never seen.

This is what he called for a wonderful Gatsby curve. The horizontal axis is the Gini coefficient, which represents the inequality. The vertical axis is the generation's income elasticity, a 1% increase in father's income will affect your expected income; the larger the number, the lower the social liquidity

As he showed, the United States is particularly inequality, especially with low liquidity. But he also believes that we are now more unequal than generations so we should expect more social mobility to go forward.

Consistent with the Great Gatsby curve, some studies also pointed out the expanding gap of educational resources among high-income and low-income American homes. As predicted by the "Great Gatsby Curve", the sharp increase in income gap seems to create a more competitive environment for the next generation.

Occasionally, academic research enters the political ancestry. A typical example of this is the "Great Gatsby curve", which represents the inverse relationship between income disparity and generational mobility. The curve was born in 2011 and attracted both cheers and humiliation. In the coming weeks, social mobility notes are commented on both sides of the discussion, along with a famous person Alan Krueger starting today. Based on works of Miles Corak, Anders Björklund, Markus Jantti, etc., I presented "Great Gatsby Curve" at a speech in January 2012. The way of thinking is simple: Generation income disparity exacerbates wealth and wealth results. Economic status of poor parents for the next generation

This urged me to make my version of the curve. In my opinion Solon is the grandfather of The Gatsby Curve, whose idea is directly inspired by the two most influential theses in this field. Both were written by Gary Becker and Nigel Tomes. . I summarized these roots in the article "Economics of Great Gatsby Curve" on 17th January 2012. You can also download the Solon chapter here. Other people are also drawing curves, and I said that Dan Andrews and Andrew Leigh were the first on the horizontal axis for Gini coefficients in 2007 articles and Jo Blanden's 2011 article first think. You can also see this in the 2012 Russell Sage Foundation book, which consists of two parents and children of John Ermisch, Markus Jäntti, Timothy Smeeding, and James Wilson. Offered by Jäntti and Björklund